3% interest on £4000

Hello, i am new to this community and app.

The 3% interest only applies to money that isnt invested right?
So if i fund the account with £10,000 and invest £6000 i will get 3% annually on my remaining £4000?

And if i invest all £10,000 i will not earn any of that 3% interest right?

Thanks for any replies :slight_smile:


Welcome to the forum :wave:. Yes that is correct ( assuming you have a Plus account )


Another quick question on that - So does the Interest get paid into our Bank Account or is it store within Freetrade?

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The interest is paid into your Freetrade account, usually about halfway through the following month. If it’s inside an ISA, it does not affect the amount you can contribute in a year, i.e. is in addition to the £20k limit.


Understood - So basically with £4000 within the Plus Account - Just need to extract the Interest when Freetrade provides it then it basically free - Is it Interest exactly £10 we get for it?

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It’s not exactly £10 because it’s 3% AER which takes compounding into effect, and also it’s calculated per day and not every month has the same number of days

As you don’t get any compounding after the first £4000 it works out slightly less than £10 on average


As long it close to £10 it should be enough - Thanks for letting us know

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